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The following information pertains to Austin, Inc. and Huston Company: Account Title Austin Huston Current assets $ 40,000 $ 62,500 Total assets 480,000 480,000 Current
The following information pertains to Austin, Inc. and Huston Company:
Account Title | Austin | Huston | |||||||
Current assets | $ | 40,000 | $ | 62,500 | |||||
Total assets | 480,000 | 480,000 | |||||||
Current liabilities | 12,000 | 31,250 | |||||||
Total liabilities | 290,000 | 376,000 | |||||||
Stockholders equity | 190,000 | 104,000 | |||||||
Interest expense | 15,800 | 18,400 | |||||||
Income tax expense | 31,600 | 28,800 | |||||||
Net income | 70,000 | 70,700 | |||||||
Required a-1. Compute each companys debt-to-assets ratio, current ratio, and times interest earned (EBIT must be computed). (Round your "Debt-to-assets ratio" and "Times interest earned" to 1 decimal place and current ratio answers to 2 decimal places.)
Compute each companys return-on-equity ratio and return-on-assets ratio. Use EBIT instead of net income when computing the return-on-assets ratio. (Round your answers to 2 decimal places.)
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